Interserve’s lenders set to take control

6 days Interserve’s parent company has applied for administration with the aim of the business being sold immediately to a new company controlled by its lenders.

A statement issued today said that all companies in the group other than the parent company will remain solvent, providing continuity of service for customers and suppliers.

It is envisaged that the administrators will immediately sell Interserve’s business and assets to a new company, to be controlled by Interserve’s lenders.

The move is part of an approach designed to restore the group’s balance sheet and provide additional liquidity after the original plan was turned down by shareholders earlier today.

Following the sale, the intention is for an alternative transaction to be implemented involving the equitisation of approximately £485m of existing debt and the injection of £110m of new money into the group, the company said.

Completion of the transaction is anticipated to occur on or before Monday 18th March.

“The board believes this is the best remaining option to preserve value, protect the jobs of employees and ensure the Group can carry on as normal with minimal disruption,” said the statement.

Interserve said that the transactino will provide the group with a strong financial position, allowing it to grow and develop the business, to deliver on its long-term strategy and protect employees including the beneficiaries of the pension schemes.